Personal Finance Chapter 25 Review

Transfer payments are government payments to some citizens.

• TRUE 
• FALSE

A personal insurance program is unique to each person or family.

• TRUE
• FALSE

When you purchase a car with safety features, you are reducing risk?

• TRUE
• FALSE

Self-insurance is the process of establishing a monetary fund to cover the cost of risk rather than insurance.

• TRUE
• FALSE

Risk reduction involves avoiding situations that involve risk.

• TRUE
• FALSE

Pure risk means there is a chance of loss with no chance of gain.

• TRUE
• FALSE

Liability risks result from loss or harm to your own personal property not the property of others.

• TRUE

• FALSE

Personal risks are risks involving income and standard of living.

• TRUE
• FALSE

Unearned premium is refunded to the policyholder when insurance is cancelled.

• TRUE
• FALSE

Proof of loss is required before insurance claims can be settled.

• TRUE
• FALSE